Globalization
What exactly caused the current global recession? To understand this we need analyze current global economic issues as well as review the history along with the outcome of these trends affecting our economic health.
As critics put it, globalization has made the rich richer and the poor poorer. This statement can easily be proven by compelling evidence reflecting on the US economy today. As the total number of middle class citizens quickly dwindles, the total number of billionaires in the US is higher than ever. So rather than referring to our current economic recession as a “recession” one can think of it as a transfer of wealth.
History
As you know, people have been traveling overseas to trade goods internationally as early as they were able to. The Silk Road which connects China and Europe was heavily traveled by traders during the Middle Ages. These facts make it evident that a global economy has existed for thousands of years.
During the late 18th century, the Industrial Revolution brought with it faster production machines and steam powered boats. Production and delivery could be done much faster than ever before.
After the 1980s, however, globalization really picked up speed. Legislation such as NAFTA (North American Free Trade Agreement) and the formation of the WTO (World Trade Organization) really solidified a global economy. For the first time in history, the entire world’s economy is under the control of one system.
Globalization
What is the meaning of globalization? Allowing each country to produce what it does best. So if one country is able to produce steel cheaper than another, that country can buy its steel for much less than trying to manufacture it itself. This enables each country to concentrate on other markets more suitable for them.
One of the major downsides to globalization in this country has been jobs loss. So many corporations have taken advantage of the tax incentives (yes, our government pays them to outsource) as well as the significantly cheaper labor. Other less fortunate countries pay a much higher prices however. In South Africa, for example, a certain cola company that I will not name here has gone in and taken corporate control of their clean drinking water. African children drink more of the soda than water…because the soda is significantly less expensive.
Moving Forward
As you may have heard “knowledge is power.” Therefore, we must strive to educate ourselves and others about globalization. Because of economic and ethical problems associated with it, most feel globalization is responsible for current global economic issues.
In these difficult financial times, many people are struggling with current global economic issues that just seem to keep getting worse. Click the link and sign up to watch a video which will explain everything you need to know about the recession, the mechanisms behind it and how you can start building real wealth today in spite of the effects of global economic recession. Don’t wait until it’s too late!